Bitcoin value hits new high as plans for fork are scrapped

THE VALUE OF Bitcoin continues to grow rapidly, with the cryptocurrency nearing the $8,000 mark on Wednesday.

It was only last week that the Bitcoin smashed the $7,000 mark and over the past few days it has continued to boom in value.

Bitcoin reached a new high of $7,888 on the Bitstamp exchange, located in Luxembourg. This comes as developers and investors discarded plans to roll-out a software update for the currency that would have effectively torn it apart.

Reuters reports that the lead developer of a Bitcoin coalition issued an email saying the update would be panned as it would have divided the community.

Mike Belshe, CEO of blockchain security specialist BitGo, signed the email along with a range of other influential figures in the Bitcoin industry.

The update, named Segwit2x, would have transformed the digital currency. Agreed upon by Bitcoin leaders, it was aimed at improving the network’s capacity.

Although Bitcoin developers initially supported the plans in May, they’ve since changed their minds as a result of new rules that would be enforced by the agreement.

Segwit2x was originally proposed as a two-step process to transform the way transactions are made through the currency, and the first was completed in the summer.

While it would have addressed network limitations experienced in the Bitcoin world, it would have introduced a “fork”. The latter would have created a separate crypto-currency.

“The ability of the Bitcoin community to self-correct and avoid a contentious fork inspires confidence and shows how the ecosystem is entering a more mature phase.”

In the email, Belshe reportedly said: “Our goal has always been a smooth upgrade for Bitcoin. Although we strongly believe in the need for a larger blocksize, there is something we believe is even more important: keeping the community together.” µ

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